Preparing for Verizon's iPhone

Verizon Wireless begins selling Apple's data-hungry iPhone this month. Verizon has been pouring money into
strengthening its 3G network and building its new 4G network, and will
offer unlimited data plans--in addition to its other existing plans--when it starts with iPhone sales, The Wall
Street Journal reports.

The
unlimited data option would distinguish the nation's largest wireless network from previously exclusive iPhone carrier AT&T, which elected
in June to restrict the amount of Internet data its smartphone
customers could use in an effort to address complaints about
network quality. It's unclear how long Verizon
will offer unlimited data plans, the Journal adds, given the support Verizon executives have voiced for the industry charging different rates for
different levels of data use.

Verizon is expected to unveil its version of the iPhone on Tuesday. Will Verizon's iPhones dramatically alter the mobile phone industry?

Verizon
more than any other U.S. carrier has built its reputation on its
network quality, and any stumble in handling iPhone traffic will call
into question Verizon's major selling point. On the other hand, if it
does handle the iPhone well, then AT&T will have a harder time
arguing it didn't mismanage its own network.

Verizon executives
point to their network's success handling already heavy laptop traffic
and a growing number of data-guzzling Android-based smartphone users on
its main, 3G network.

Verizon Won't Be Much Better Than AT&T, claims
John Biggs at TechCrunch: "11 million AT&T subscribers are slamming
the network while 4 million Droid-ites are tapping Verizon's network
gently. So what happens, then, when the iPhone effect hits Verizon,
especially on Verizon's older, slower CDMA network? Verizon will
experience the exact issue that has been plaguing AT&T: the curse
of success."

Is AT&T In Trouble? asks Sinead Carew at Reuters. AT&T, which has relied on the iPhone for customer growth, could suffer a mass exodus of subscribers once Verizon starts selling the iPhone, Carew says. But he also cites analysts who note that most of AT&T's iPhone customers are in family plans, which are difficult to exit.

AT&T Will Survive, states
Ben Parr at Mashable: "AT&T isn't going to be hemorrhaging users on
Verizon iPhone launch day due to switching costs, and AT&T has
strong profits and a strong line of phones, including the iPhone,
coming to market this year that will keep it competitive." He adds that the
future of both Verizon and AT&T depends most on the success of the 4G networks they're developing.

Yes, We Will Be Just Fine,argues
AT&T spokesman Larry Solomon in a statement. Solomon says
AT&T's GSM technology is faster than Verizon's CDMA technology, and adds, "I'm not sure iPhone users are ready for life in the slow
lane."

Bring On The Price Wars,writes Douglas McIntyre at 24/7 Wall St. AT&T will likely match Verizon's unlimited data plan and may even offer a plan that is more competitive, he says. Offering more services to customers for less money could hurt AT&T and Verizon financially, McIntyre adds, given that both carriers have lost much of their profitable landline businesses.

What About T-Mobile and Sprint? asks
Larry Dignan at ZDNet: "If Verizon gets its own exclusive deal with the
iPhone, the two other major wireless carriers would be locked out of
the iPhone/iOS market ... Sprint and T-Mobile could ponder a merger if they started to
lose share."